Gift bags sit stacked during the unveiling event for the Xiaomi Corp. Mi MIX 2S smartphone in Shanghai, China. (Photographer: Qilai Shen/Bloomberg)

China’s Xiaomi Sets Up India Manufacturing Units For Smartphones, Circuit Boards

Chinese handset maker Xiaomi today said it has set up three new smartphone manufacturing units in Tamil Nadu and Andhra Pradesh, along with a facility for printed circuit board manufacturing in India.

While the company didn't disclose investment details, it said the move will double its manufacturing capacity in India.

We had two facilities for smartphone manufacturing earlier. Now we have added thee more in Sri City, Andhra Pradesh and Sriperumbudur in Tamil Nadu. These are in partnership with Foxconn.
Manu Jain, managing director and vice president, Xiaomi

Besides, a small number of phones are also being made in Noida with another partner - Hipad. The company can now manufacture two phones per second during operational hours at these facilities that employ over 10,000 people, of which 95 percent are women, Jain said.

Xiaomi is also setting up a new PCB assembly unit in Sriperumbudur in partnership with Foxconn.

"We are committed to manufacturing in India. PCB is 50 percent of the value of a phone... By the third quarter, all Xiaomi phones made in India will have PCBs that are locally assembled," he said.

Xiaomi, which is among the top three smartphone players in the country, is also hosting over 50 of its global suppliers in India. These companies will be visiting Andhra Pradesh and Uttar Pradesh to explore investment opportunities to set up local manufacturing base.

"If these companies choose to invest here, there is an investment opportunity of over Rs 15,000 crore and can generate employment for over 50,000 people," Jain said.